In recent times, some have argued that mixing and tumbling are two different terms. They propose that Bitcoin tumblers are services that mix coins from multiple users, while Bitcoin mixers are services that break up the transaction history of Bitcoin. Whichever concept is aligned, the main purpose is to provide anonymity to those who use it.
Decentralized Mixers: are Mixer services that utilize open-source protocols, such as Coinjoin, combine Bitcoin into a single large transaction and redistribute it to the destination address. This process is similar to centralized methods, but it's automated and doesn't involve third parties.(https://i.ibb.co/2SXcwCJ/images.png) (https://ibb.co/HCmG0bZ)
This is a very good post, especially for people who do not know how mixers work. I know the government and centralized institutions are against privacy solutions, but BTC users must understand how important privacy is in the network and using mixers is a good way to enhance your privacy.
Some people even believe that you need to have something to hide before you use mixers, which is so wrong. Unijoin, which is a recommended mixer posted an article on this some weeks ago, and it is a good read for those who are interested:
https://unijoin.medium.com/why-do-we-need-to-protect-our-privacy-528b0a2dd22b
Nice guide by the way op. At least for those who doesn't know what Tumblers are, can start from here.
They are generally known as tumblers. They're designed to enhance Bitcoin privacy. Whether you call them mixer or a tumbler, they're the same thing. Like you said, most mixing services today are centralized, meaning they're controlled by a single entity and third parties. Only a few, like CoinJoin, operate in a decentralized manner. When using a mixing service be aware that centralized mixers have full control over your coins during the process. So, it's important to research and choose reputable services to avoid the risk of losing coins. Many new mixers are entering the market, but most of them are scams or have ulterior motives. Remember, while increasing your privacy, you should also be smart enough to protect your coins too.
I don't know about other people, but personally i don't consider CoinJoin as part of mixer. In past, it's rare to see people use term mixer/mixing/mix when describing CoinJoin. Mixer break transaction history, while CoinJoin usually obfuscate it.
Note: Coinjoin as mentioned above, according to investopedia.com is an anonymization strategy that protects the privacy of Bitcoin users when they conduct transactions with each other, obscuring the sources and destinations of BTC used in transactions.
I don't know about other people, but personally i don't consider CoinJoin as part of mixer. In past, it's rare to see people use term mixer/mixing/mix when describing CoinJoin. Mixer break transaction history, while CoinJoin usually obfuscate it.Unijoin is a mixer, but it uses the CoinJoin technology. Coinjoin protocols are self custodial and trustless, i.e. WabiSabi, JoinMarket and Whirpool, people who use these protocol remain in control of their funds. Unlike mixers that you have to deposit coins into the address specified by the mixer. This is the big difference between CoinJoin implementations and mixers.
I don't know about other people, but personally i don't consider CoinJoin as part of mixer. In past, it's rare to see people use term mixer/mixing/mix when describing CoinJoin. Mixer break transaction history, while CoinJoin usually obfuscate it.
Since this thread aimed for beginner, i believe we should mention that some exchange and services reject mixed coin due to various reason. If you still deposit or send your coin to them, usually your account would be frozen and they'll ask for tons of personal information if you want to get your coin back.
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Since this thread aimed for beginner, i believe we should mention that some exchange and services reject mixed coin due to various reason. If you still deposit or send your coin to them, usually your account would be frozen and they'll ask for tons of personal information if you want to get your coin back.
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There is some truth in that, but still from my own experience it doesn't happen often, at least it never happened to me that someone had a problem because I sent them coins that have their origins in mixers. By that I mean transactions that went from my non-custodial wallet to CEX addresses, but also those transactions that went through payment processors.
Likewise, more or less all CEXs do not want coins related to gambling, but people still gamble even more than before using cryptocurrencies.
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There is some truth in that, but still from my own experience it doesn't happen often, at least it never happened to me that someone had a problem because I sent them coins that have their origins in mixers. By that I mean transactions that went from my non-custodial wallet to CEX addresses, but also those transactions that went through payment processors.
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I usually consolidate my coins from mixers and split them in different addresses, so I usually never send directly from mixers (or from campaigns) to an exchange.
There is also Joinmarket that is better option than Coinjoin and it is fully decentralized.
I would also add coins that have integrated ''mixer'' in them, for example Monero, that is super easy to use and it's decentralized, that is why regulators don't like it very much ;)
I wish something like this can be added to Bitcoin code, maybe with MimbleWimble like in Litecoin.
Why would you want to mix your coin?There are many investors in bitcoins who know nothing about mixers and the services they provide. They are okay with just the anonymity that bitcoin provides, and because they have not been involved in anything illegal, they have had no reason to be concerned about their privacy.
Financial privacy is a key concern for both users and non-users of cryptocurrency. Traditional financial institutions such as banks do not provide this level of privacy, as they can disclose information to law enforcement agencies or governments at any time. When it comes to mixers, the guarantee of your privacy depends on which mixing service you use.
They are okay with just the anonymity that bitcoin provides,
There are many investors in bitcoins who know nothing about mixers and the services they provide. They are okay with just the anonymity that bitcoin provides, and because they have not been involved in anything illegal, they have had no reason to be concerned about their privacy.
It is not a must for every investor to use mixers.
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I usually consolidate my coins from mixers and split them in different addresses, so I usually never send directly from mixers (or from campaigns) to an exchange.
*not anonymity
Let's not kid ourselves here, Bitcoin is not *anonymous* like Monero is. It is at best pseudonymous, otherwise we would not have to worry about all these blockchain analysis scrapers compiling data about our transactions.
Mixing bitcoins does not make them anonymous either, it just makes them a little more pseudonymous. It is a limitation of the Bitcoin protocol.
There are many investors in bitcoins who know nothing about mixers and the services they provide. They are okay with just the anonymity that bitcoin provides, and because they have not been involved in anything illegal, they have had no reason to be concerned about their privacy.
It is not a must for every investor to use mixers.
But with how Bitcoin community/devs value backward compatibility, it'll be optional privacy feature and those who use it obtain less privacy due to small amount of Bitcoiner who use it.I don't think so.
But with how Bitcoin community/devs value backward compatibility, it'll be optional privacy feature and those who use it obtain less privacy due to small amount of Bitcoiner who use it.I don't think so.
There are a lot of people who are always interested in privacy for Bitcoin, they are just not so much advertised in news and social media.
It is quite logical that those who want more anonymity do not want to expose themselves in public.There are some of them in public but not as nearly enough.
"Illegal" with every mention of mixers or similar series is the narrative that governments want to impose. Under this pretext, services that offer more privacy are closed and confiscated. It is indeed about the desire for greater control of people and better insight into their privacy.Yes, again because certain parties will certainly associate the use of Bitcoin mixers with various criminal matters or other things that are considered to be in conflict with the government. Like p=money laundering and also the use of Bictin to fund war activities or other crimes. That's what certain parties relate to, always.
When choosing a mixer, it is required that everyone conducts proper research on how long the particular mixer has been operating. Try to find out from others who have had personal experience (though don't believe everything), and start by mixing smaller amounts (which is where the risk comes in).I would add seeing the time period that a mixer platform has spent already in the market should not be our main point to tag them as good ones. Because recently many cases have shown that some mixers which was very good in the past and have spent a good long time in the market with positive feedback, and when an offline user come after a long time to use that service again without proper research having a good reputation of that service in mind.
Yes, again because certain parties will certainly associate the use of Bitcoin mixers with various criminal matters or other things that are considered to be in conflict with the government. Like p=money laundering and also the use of Bictin to fund war activities or other crimes. That's what certain parties relate to, always.The main problem is, the government would rather shut down mixers than have to look for people who abuse Bitcoin mixer services. This is clearly wrong and contradictory, because I am sure that not all mixer users have the aim of circumventing government regulations relating to money laundering practices. Obviously, this is a very unwise decision, considering that the person at fault is not the mixer, but the individuals who use the mixer for their own illegal purposes.
However, for some parties, mixers are really helpful, so again, this is to maintain privacy.